Embed Size (px)
Citation preview
Mob
ile
Inte
rnet
Pen
etra
tion
in I
ndia
Sou
rces
: GSM
Ass
ocia
tion
of
Indi
a
Item % of Total
Population 70
Income 56
Expenditure 64
Teledensity 17Savings 33
Consumer goods 30-60
Top 20% Rural HouseholdsProfile %
Land-owning farmers 39
Salary/ wage earners 31
Self-employed in non-agricultural activities.
18
1980 2007 2012
66 40 33
Rural Profile
Item % Rural Households
No Land 40
Marginal (< 2 h) 30
Medium (<10 h) 25
Large 5
Farm Income
Relative Size of Rural Markets
There are almost twice as many 'lower middle income' households in rural areas as in the urban areas.
At the highest income level there are 2.3 million urban households as against 1.6 million households in rural areas.
Middle and high-income households in rural India is expected to grow from 80 million to 111 million by 2007.
In urban India, the same is expected to grow from 46 million to 59 million. Thus, the absolute size of rural India is expected to be double that of urban India.
Changing fast Large, Comparison with urban Not homogenous mass (Customized services) Services and products may not be directly be
adopted from urban markets For many rural consumers, first experience of
service may not be through physical infrastructure (banks, health, education)
Emerging Profile Rural Markets
Examples from Banking and Agri advisory
Examples from Banking and Agri advisory
Extent of Financial Exclusion
Source: bda: Overview of Mobile Banking and Convergence, FICCI Communications & Digital Economy Committee, September 2008.
•Predominantly cash economy, a large informal sector, with many people employed casually.
• An important proportion of overall economic activity.
Enhancing Services: Policy and Regulation
Business Correspondent model No Frills Account Financial Inclusion mandates and Fund (support IT) NREGS
Rural Banking
Focus on opening “no Frill Accounts” (especially since banking correspondent model in January 2006) From 0.5 million in March 2005, at least 33 million
by March 2009, (many accounts non-functional). Only 11% of 25.1 million such basic banking
accounts, opened between April 2007 and May 2009, are operational.
Rural bank branches only 5.2% of the country’s 650,000 villages.
Access to credit: very limited
Retrieving Data Stored Already
mKRISHI – Mobile Agriculture
Provide personalized advice to the farmers on fertilizers / pesticide based on the current parameters like location , crop image, prevailing environment condition in the native language..
Benefits Accurate Advice based on
facts and prevailing conditions.Empowerment of farmers with
current market information. mKrishi knowledge base can be
utilized by universities and expert to understand crop, micro and macro pattern in the Indian context.
Motivation - Bridging the Gap
CDMA Network
Government Servers
Weather Servers
Bank Servers
National Commodities Exchange
Expert Advice from Agriculture Universities & Research Institutes
Local Markets
Soil Sensors
Internet
Village Knowledge Center
Process Description
1. Sensors Collect Soil Data
Dat
a C
onso
lida
tion
U
nit
Dat
a C
onso
lida
tion
U
nit
2. Consolidate
3. Parse information & retrieve accurate advice
4. Prepare and Send SMS in Local Language
Agriculture expert
database
5. SMS to Farmer in Local Vernacular
Challenges of Rural Telecom Service
Integrating the physical supply chain with the electronic
Converting the supply chain to electronic Last mile: Selection of village level institutions and
individuals Veracity of information, dealing with complexity of
linkages
Supporting Innovation in start ups
Challenges of Rural Telecom Services How to link the customers to the services
Technology as the enabler. But is that enough? Development of an ecosystem
Technological innovations (speech recognition, low cost ATMs, tele health devices)
Entrepreneurship: Linking the solutions to target village consumer groups (Seed and angel funding, institutional support)
Private enterprises (village level entrepreneur), creating several services on a single platform: Mobile: PC (CSC)
Integrating services and payments Scaling Up
Innovation Ecosystem (Incubators, Seed and Angel Funding)
RuralCitizen
Business/Information Ecosystem (what services, cost, intermediaries)
R&D (Technical and Market) (Speech recognition, NFC)
Critical Elements: The Two Ecosystems
Regulatory Issues
Publicly funded research USOF support Facilitating services (banking, proportionate regulation,
NREGS) Framework for regulation (Interoperability, security )
Thank You
